Insurance Quotes & Advice

At least a dozen major brush fires are currently raging uncontrolled in Southern California. Fueled by hot, dry Santa Ana winds sweeping in from the desert with gusts as high as 100 mph, firefighters have been helpless in their efforts to stop these fires. An estimated 1 million people have already evacuated their homes in the wake of these fires. President Bush has declared a state of emergency with federal disaster relief to follow.

Insurance pay outs are expected to top $500 million and industry experts warn that the figure could rise much higher. It is reported that hundreds of homes and businesses have been completely destroyed, with thousands more damaged.

Home and business owners near fire prone areas can expect their premiums to rise sharply in the near future. It was reported that earlier this year that Allstate Corp., the third largest insurance carrier in the state, has stopped offering property insurance in California all together in an effort to limit their risk exposure.

Many insurance companies have already stopped writing policies for the highest risk areas. Property owners in these areas have had to turn increasingly to non-traditional insurance companies like Lloyd’s of London in order to find adequate coverage. Depending on the final numbers for this disaster, some experts warn that other carriers may follow Allstate’s example and pull out of the state entirely due to the high real estate values in the region.

If your property has been damaged be sure to contact your insurance representative immediately to begin the process of filing a claim.